________ involves active efforts to increase opportunities in the workplace or education for underrepresented parts of society such as minorities and women.

Affirmative action

Collective bargaining

Anti-discriminative action

Meritorious action

Question

2of25

The concept of _________ is the underlying reason why trade benefits both sides of a trading arrangement.

maximum production

absolute advantage

specialization

opportunity cost

Question

3of25

The USA has decided to impose a 20% tax on imported automobiles.

This is a tariff.

This is an import quota.

This will reduce the number of imports of foreign automobiles and increase their sales price.

Both A and C

Question

4of25

The slope of the production possibility frontier is determined by the _______ of expanding production of one good, measured by how much of the other good would be lost.

comparative advantage

opportunity cost

absolute advantage

relative cost

Question

5of25

Some nations that seek to produce all of their own needs face the problem that:

a. They can deplete their natural resources as a result.

B. Some industries are too small to be efficient if restricted to their domestic markets alone.

C. They will not be able to satisfy the wants of all their citizens.

D. The opportunity cost of producing some of their own goods is lower than that of trading with others for them.

Question

6of25

Once the U.S. government opened its domestic markets to international trade, the competition from imported cars, steel and other products caused demand for similar U.S. good to

a. fall, leading to lower output, fewer workers, and an overall decline in union membership.

B. increase leading to an overall increase in union membership

C. fall, causing union membership to increase as they demand wage increases

D. rise, but laws made it difficult for new workers to become union members

Question

7of25

The idea behind comparative advantage reflects the possibility that one party:

a. may have an absolute advantage in producing two different goods and may export both of those goods to the other party.

b. may be able to produce something at a lower dollar cost than another party.

C. may be able to produce something at a lower opportunity cost than another party.

D. may be able to produce everything relatively more efficiently than another party.

Question

8of25

Before trading, the equilibrium price of sugar in Brazil is 12 cents a pound and in the U.S it is 24 cents a pound. When trade is allowed and the U.S is allowed to import sugar, which of the following will occur?

Sugar production will increase in Brazil.

The price of sugar will increase in Brazil and decrease in the U.S.

Consumers of sugar In Brazil are worse off, producers in the U.S are worse off.

All of the above

Question

9of25

After World War II the Taft-Hartley Act of 1947 was passed, it

A. specified that workers had a right to organize unions and that management had to give them a fair chance to do so.

b. gave states the power to allow workers to opt out of the union in their workplace.

c. requires employers with more than 100 employees to provide written notice 60 days before plant closings or large layoffs.

d. regulates employee pension rules and benefits.

Question

10of25

The countries of China and India can produce two goods: Rice or Shirts. The table below describes the production possibilities of each country in a year.

Rice Shirts

China 400 lbs. 200

India 330 lbs. 110

India has a comparative advantage and absolute advantage in the production of shirts.

China has a comparative advantage in the production of rice.

India has a comparative advantage in the production of rice.

India has a comparative advantage and absolute advantage in the production of rice.

Question

11of25

According to the theory of ________________ , countries gain from trade because

a. absolute advantage; trade makes firms behave more competitively

B. comparative advantage; world output can rise when each country specializes in what it does relatively best.

C. opportunity cost; each country has an absolute advantage in producing something

D. comparative advantage; output per worker in each firm increases

Question

12of25

Why do similar high-high income economies engage in intra-industry trade?

The division of labor leads to learning, innovation and unique skills and economies of scale.

The division of labor leads to learning, innovation and unique skills and opportunity costs.

They have an absolute advantage and economies of scale.

They have both a comparative advantage and absolute advantage.

Question

13of25

If unions help workers secure pension benefits, so that those workers are less dependent on government social assistance after their retirement, then

social security can be eliminated and the minimum wage increased.

the for-profit unionized industries will be less productive.

the union is economically beneficial.

the union is economically harmful.

Question

14of25

The existence of labor unions forces employers to deal with workers __________.

individually, in accordance with the Fair Labor Standards Act of 1938

collectively, rather than as individuals

cooperatively, rather than uncooperatively

equitably, rather than inequitably

Question

15of25

When a group of workers in the United States wish to form a union,

they announce this fact and set an election date when the firms' employees will vote in secret ballot.

workers sign an official card stating that they want a union, usually 60% or more.

they must have an equal number of workers and management agree to the formation of the union.

Both a and b

Question

16of25

Since 1960, the earnings gap between men and women in the U.S. Labor market has ______; but in the 1970's it _______ and in the 1980's the earnings gap has _______________.

continued to rise; increased; declined steadily

continued to narrow; did not change much; risen slightly continued to narrow, did not change much; been declining

continued to narrow; did not change much; not changed significantly

Question

17of25

Union membership is highest in the ________________.

30-50 age range

40-65 age range

25-45 age range

45-64 age range

Question

18of25

Alternate output from one day's labor input:

Wheat Textiles

USA 24 Bushels 6 Yards

India 6 Yards 24 Bushels

From the data above, the U.S A

should export textiles to India.

has a comparative advantage and absolute advantage in the production of wheat.

has an absolute advantage over India in the production wheat.

has an absolute advantage in the production of textiles.

Question

19of25

If U.S. immigration consists of mainly low-skilled workers, then a decrease in immigration will ______ the wages of low-skilled workers.

will increase

will reduce

may increase or decrease depending on union membership will not affect

Question

20of25

Critics of a labor union might argue one of the following:

Unions have a higher percentage of women and workers over the age of 40

Unions can prohibit economic growth if new technology is blocked

Unions oppose suppression of wages by profit-seeking firms

Unions have a tendency to gain as much as possible in the long-term

Question

21of25

Alpha and Beta can each produce either oranges or Apples. The table below describes the production possibilities of Alpha and Beta's production for one hour. The opportunity cost of producing 1 orange for Alpha and Beta respectively, are:

Oranges Apples

Alpha 18 9

Beta 16 4

4 apples; 8 apples

9 apples; 3 apples

0.5apples; 0.25 apples

0.33 apples; 0.66 apples

Question

22of25

There is little evidence that the reduction in the U.S. union membership over time has brought _______ for the U.S. Economy as a whole and also little evidence that countries with high union membership _________.

Harmful economic costs: tend to enjoy economic benefits as a result

Broad benefits or costs; tend to suffer economic damage as a result

Economic benefits; lave economically benefited

Economic damage; have broader benefits as a result

Question

23of25

In the United States, the number of unionized government jobs have ________ and the number of unionized jobs in the manufacturing sector have ______________.

increased modestly; increased modestly

dramatically declined; trended down

increased modestly; trended down

modestly declined; declined dramatically

Question

24of25

Alternate Outputs from One Day's Labor Input:

Wheat Textiles

USA 24 Bushels 6 Yards

India 6 Yards 24 Bushels

The opportunity cost of on bushel of wheat in India is

4 yards of textiles.

12 yards of textiles.

1 yard of textiles.

3 yards of textiles.

Question

25of25

There is sufficient evidence showing that union workers in the manufacturing sector generally:

Have lower productivity than non-union works

Have fewer years of experience than non-union workers

Tend to hold the union jobs for less time than non-union workers

Have higher productivity than non-union workers